No. This is taxable, but will only be reported as Long-Term Capital Gains when you follow the instructions below.
First a couple of items to keep clear when entering this transaction:
If the land was given to you by your father as a gift, your basis for figuring a gain is the same as the donor's adjusted basis. (This would basically be what your father paid for it.)
If you inherited the land, your basis would be the Fair Market Value of the land on the day you inherited the property (date of death).
Example: if your basis is $50,000 on a $65,000 sale price, you would have a $15,000 long-term capital gain. Note to add any Sales Expense (realtor commissions, etc) to your basis when you report this.
If you have additional questions or details regarding this, please feel free to post in the comments for further clarification.
Sale of land gets reported in TurboTax as a sale of an investment.
Please follow the following steps to record the sale in TurboTax:
- Within your return, select Federal tab
- Select Wages & Income tab
- On "Your income" page, click Start button for Stocks, Mutual Funds, Bonds, Other
- On "Did you sell any investments in 2017?", click on Yes button
- On next page, answer whether or not you received a 1099-B or a brokerage statement for the sale (Probably NO)
- On next page, "Choose the type of investment you sold", select radio button for Land and click on Continue button (See the attached screenshot below. Click to enlarge.)
- Enter the details of your land sale on the next page, "Enter Land Sale Information" and click on Continue buttton
- On next page, select radio button for the way in which you acquired the land and click on Continue button
- On next page, "Any Business or Rental Use?", indicate how you used the land and click on Continue button
- On next page, "Enter Cost Information", enter Date Acquired and Original Cost and click on Continue button
- TurboTax will then calculate your gain on the investment in land, indicate whether it's short- or long-term, and indicate your Proceeds and Cost Basis
- You can proceed further and add any additional similar investment sales in like fashion
